The ONE Group Hospitality Inc. Q1 2023 Earnings Call
[music].
Greetings and welcome to the one group first quarter 2023 earnings Conference call.
At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation, if you'd like to join the question queue. You can press Star then one if you'd like to remove yourself from the question queue Press Star then two.
Please also note this event is being recorded.
And now I would like to turn the conference over to Tyler Loy.
Thank you operator, and Hello, everyone.
Before we begin our formal remarks, let me remind you that part of our discussion today will include forward looking statements.
These forward looking statements are not guarantees of future performance and you should not place undue reliance on them.
These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect.
Please also note that these forward looking statements reflect our opinion only as of the date of this call.
We undertake no obligation to revise or publicly release any revisions of these forward looking statements in light of new information or future events.
We refer you to our recent SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition.
During today's call, we will discuss certain non-GAAP financial measures, which we believe can be useful in evaluating our performance.
However, the presentation of these measures or other information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.
For reconciliations of these measures such as adjusted EBITDA adjusted net income restaurant operating profit comparable sale and total food and beverage sales at owned and managed and licensed units to GAAP measures.
Along with a discussion of why we consider these measures useful.
Please see our earnings release issued today.
With that I'd like to turn the call over to Mandy hilarious.
Thank you Tyler and Hello, everyone. We sincerely appreciate you joining us today and for your interest in the one group.
Let me begin by thanking all of our team members for their hard work, providing world class operations as we build a strong portfolio of restaurants with industry, leading return on invested capital.
Key highlights for the first quarter include.
Total revenues growth of over 11% to $82 6 million with a one 6% increase in comparable sales.
Best in class SDK restaurant level margins of 22, 1% and an increase in year over year adjusted EBITDA. Despite continued headwinds in inflation on a year over year basis.
Consolidated cost of goods sold of 24% driven by menu innovation and mix management, our flexible supply chain and executing our margin and sales driving initiatives, such as stopping sites and beverage.
Our newest SDK venues continue to significantly outperform our investment model.
Average should have less than a one year payback and.
And finally, we finished the quarter with $48 $7 million in cash, which allow us to be flexible and returning value to our shareholders, including funding our rapidly expanding and robust pipeline of future restaurants.
Our focus on strong operational execution culinary innovation and vibe dining continues to resonate with our guests and we are on plan with our growth strategy.
This quarter, we continue to see strength in our weekend and special occasion business as well as strengthening demand for private events.
More and more people return to offices around the country.
This also coincides with the strength in our happy hour program at both brands, particularly with our three six and $9 price points, which we believe are some of the most compelling values in the industry.
Importantly, our teams are converting the energy created by our happy hour guests into an active and vibrant dinner business.
The continued strength in our underlying business along with the performance of our new restaurants gives us tremendous confidence in our revenue and profit power of our development pipeline.
Despite a challenging construction environment, we have established an incredible pipeline of high quality real estate development and plan to open eight to 12.
Venues this year.
Importantly, we have an established platform for scalable and long term revenue and profit growth.
We kicked off the year with the opening of our newly redesigned Kona Grill in Columbus, Ohio, and the Easton Town Center in January .
This new units performed above the system average and above our Kona grill investment model for the quarter.
We are encouraged by the start of this new restaurants and are looking forward to the patio season in Ohio.
We also opened a new rooftop at the SDK in Scottsdale in February .
This is the fourth domestic SDK rooftops in our portfolio and a great addition to our already strong Scottsdale location.
For the remainder of the year, we plan to open two to four additional Kona grills in the following cities reverts.
Riverton, Utah Desert, Rich, Arizona, Henderson, Nevada, and Tigard, Oregon.
Three to five new company owned <unk> in the following cities, Charlotte, North Carolina, Boston, Massachusetts, Washington, DC, Aventura, Florida, and South Lake City, Utah and finally.
We plan to open one manage our licensed SDK.
As we have long stated our growth story has just begun we foresee a total addressable market of at least 400 restaurants, including 200, SDK restaurants globally and at least 200, Kona grills domestically to.
To conclude our team is doing a fantastic job by focusing operations and day to day execution.
We are executing our plan of strengthening our existing business and building our development pipeline to powerfully grow revenue and EBITDA to build significant and sustainable shareholder value over the long term.
Now I will turn the call over to Tyler.
Thank you Manny let me start by discussing our first quarter financials in greater detail before reiterating our full year guidance.
Total GAAP revenues were $82 6 million, increasing 11, 3% from $74 2 million for the same quarter last year.
Included in our total revenue is our owned restaurant net revenues of $78 6 million, which increased 11, 4% from $7 5 million for the same quarter last year.
The increase in revenue was primarily attributable to the opening of SDK San Francisco in August of 2022.
The opening of SDK Dallas in November of 2022, and the opening of Kona Grill Columbus in January of 2023.
Domestic consolidated comparable sales increased one 6% for the quarter compared to 2022.
As a reminder, we are lapping consolidated comparable sales of over 45% in the fourth quarter of 2022 versus the first quarter of 2021.
Management license and incentive fee revenues were 4 million, increasing eight 5% from $3 7 million in the first quarter of 2023.
This increase was primarily attributable to strong performance.
BK restaurants in North America, along with the opening of SDK Stratford in November of 2022.
Owned restaurant cost of sales as a percentage of owned restaurant net revenue decreased 170 basis points to 24% in the first quarter of 2023 compared to 25, 7% in the prior year, primarily due to menu mix management pricing and operational cost reduction initiatives.
Owned restaurant operating expenses as a percentage of owned restaurant net revenue increased 380 basis points to 59, 6% in the first quarter of 2023 from 55, 8% in the first quarter of 2022, primarily due to consolidated average wage increases in operating expense inflation.
This was partially offset by single digit pricing taken in the back half of last year.
The increase in owned operating expenses as a percentage of owned restaurant net revenue should normalize beginning in the second quarter as we begin to lap wage and operating cost inflation in the prior year.
We believe that we have additional pricing power for both brands as we compare our pricing to those of our competitors.
Restaurant operating profit decreased 210 basis points to 16, 4% for the first quarter of 2023.
Compared to 18, 5% in the first quarter of 2022.
Restaurant operating profit and I think.
It was a robust 22, 1% and Kona Grill operating profit was eight 1% for the quarter.
As a reminder, the first quarter is typically a seasonally low revenue quarter for our restaurants, which is why we are comfortable reiterating our total owned operating cost guidance for the year.
On a total reported basis general and administrative expenses were $7 5 million compared to $6 9 million in the prior year.
The increase was attributable to increased stock based compensation expense.
When adjusting for stock based compensation adjusted General and administrative expenses were $6 2 million in the first quarter of 2023 and $6 million in the same quarter last year.
Preopening expenses were $1 3 million compared to <unk> 3 million in the prior year.
This increase was primarily related to payroll training and cash and noncash preopening rent for Kona Grill, Columbus, which opened in January of 2023 and other venues that are currently under construction.
Interest expense was $1 8 million in the first quarter of 2023 compared to <unk> 5 million in the first quarter of 2022.
The increase was driven by increases in our outstanding balance and benchmark rates year over year.
Income tax expense was flat at <unk> 2 million in the first quarter of 2023 and for the first quarter of 2022.
Net income attributable to the one group Hospitality, Inc was $2 6 million or <unk> <unk> net income per share.
Compared to a net income of $3 7 million in the first quarter of 2022 or 11 net income per share.
Adjusted net income was $3 2 million or <unk> 10, adjusted net income per share.
Adjusted EBITDA for the first quarter attributable to the one group Hospitality, Inc was $10 9 million compared to $10 8 million in the first quarter of 2022.
We have included a reconciliation of adjusted EBITDA adjusted net income and adjusted net income per share in the tables in our first quarter 2020 earnings release.
During the first quarter of 2023, we repurchased approximately 1 million shares of our common stock.
In total we have purchased one 2 million shares or approximately 4% of our outstanding shares.
In addition, our board has authorized an additional $5 million and share repurchases. So we have approximately $7 1 million and share repurchases we.
We will continue to use discretion in determining the conditions under which shares may be purchased from time to time if at all.
Now I'd like to provide some forward looking commentary regarding our business.
This commentary is subject to risks and uncertainties associated with forward looking statements as discussed in our SEC filings.
We as always remind our investors the actual numbers and timing of new restaurant openings for any given period is subject to a number of factors.
Outside the company's control, including weather conditions and factors under control of landlord contractors licensees and regulatory and licensing authorities.
Based on the information available now and the expectations as of today, we are reiterating the following financial targets for 2023.
Beginning with revenues, we project, our total GAAP revenue to be between 360 and $380 million, including managed license incentive fee revenues between 17, $17 5 million.
Total owned operating expenses as a percentage of owned restaurant net revenue of 82, 5% to 82%.
Total G&A, excluding stock based compensation of approximately $27 million to $29 million.
Adjusted EBITDA of 50% to $54 million, which represents an approximate 21% to 31% increase compared to 2022.
Restaurant Preopening expenses between five five and $6 5 million and.
And an effective income tax rate of between 5% to 10%.
Total capital expenditures net of allowances received from landlords of approximately 2% of company owned revenue at approximately three to $3 5 million of our new company owned venue and.
And finally, we plan to open eight to 12, new venues in 2023, including one managed or licensed SDK.
I will now turn the call back demanding.
Thank you Tyler and thank you all for your time today.
Let me conclude by saying we are in the early stages of our long term growth strategy as we continue to build a portfolio of high volume brands with compelling returns for our shareholders.
Above all I am grateful to all of our teammates who bring our mission to life every day to be the best restaurant in every market, where we operate.
They do this by delivering exceptional and unforgettable guest experiences to every guest every time.
I also would like to thank our customers that visit and continue to return to our restaurants. So they can enjoy the highly differentiated vibe dining experience as they have been craving.
We appreciate everyone joining us on the call today, Alan and I are happy to answer any questions you may have operator.
Thank you we will now begin the question and answer session to ask a question you can press Star then one on your telephone keypad, if youre using a speakerphone you may need to pick up your handset before pressing any keys to withdraw yourself from the question queue.
Please press Star then two we will pause momentarily to assemble the roster.
And the first question comes from Joshua long with Stephens. Please go ahead.
Hi, This is Tyler on for Josh Congrats on another great quarter and thanks, So much for taking my question here.
Can you walk us through the price and traffic components for the quarter. Please.
Okay.
So Tyler on the average for both brands, we're looking at a plus six on price and a plus two to three on mix.
And then the differences on traffic.
Okay, Great and can you give us an update on how trends are running in April .
Yes, Tyler this is this is tyler.
So.
Relative to the second quarter the balance of the year I mean, we reiterated our guidance I think we feel very comfortable with.
Where we are through the second quarter.
Okay sounds great and then just one more question here. So the demand Gen license deals kind of took a pause during COVID-19.
As we emerge out of the pandemic I'm sure a lot of hotels or wanting to bring in new attractions.
See if you could just talk a little bit about the appetite that you are seeing for these types of deals.
Yes, Tayo. This is Manny so you are correct the coming out of Covid.
Appetite has gone up pipeline has really picked up steam.
A significant amount of relationships with people that we are now exploring relative to new properties and as we added on our guidance. We do have one coming into this year. So I think the outlook for.
For the future is very bright on license and management and getting back to.
Our asset light growth strategy.
Okay, Great. That's all for me thanks.
Next question comes from Nick <unk> with Wedbush. Please go ahead.
Yes.
Thank you.
Can you just give us an update on the unit economics of the Columbus Kona like is it meeting your expectation with regard to the newer prototype.
Yes.
Yes. This is Randy again relative to the new units.
I think we mentioned in our prepared statements were above our system average on volume for that store solar.
Greater than 5.2 and <unk> units.
Super excited about that and then we achieved that without having the patio opened which is I think something that I mentioned in my comments is that the patio is adding 40 to 50 seats to that property, which will allow us to take advantage of the mall traffic.
Presence on Fridays and Saturdays. So we're really super excited about the revenue potential and then as we expect.
Functionality.
Because of the new layout of the of the restaurant is very efficient. So we're able to operate now our sushi bars most of the time with only one person on the bar. So I think in the long term thats going to be a significant impact to labor.
And the margin profile of the clinical Brandon.
Okay.
And within sort of the total consolidated.
Margin guidance, where do you think Kona comes down for the year.
Well I think if I think of the Kona Grill margin I think obviously as Alan mentioned earlier.
<unk>.
Seasonality is it's a it's one of the slower quarters for the brand and in the first quarter. So.
Particularly coming out of the holiday season into the January month in malls, so were dealing with that as kind of a factor impacting the margin in the shorter term and then this first quarter.
If I was the last quarter, where are we lapping significant inflation on labor because we started feeling it mostly on the second quarter.
Last year on labor, So I think that we have a positive.
Positive momentum on labor, because we were finishing that lap.
On the wage which was significant for US and then we do have an internal team and we're significantly focusing on on initiatives relative to <unk>.
Operating expenses, where we're looking at everything from.
Our paper supplies to usage to we're looking at all of our contracts and negotiating that and also looking at productivity of.
Of labor applying some of our learnings from Columbus back to some of the other.
In our legacy units, so I would say that the combination of all those.
Those elements will put.
I believe that we will have much higher margins on our growth year over year.
<unk> mentioned earlier, we did it.
<unk> overall guidance for for that which is basically the inverse of the operating cost, but all I feel pretty good about the progress and.
And Im specifically excited about the possibilities with the new model that we just developed in Columbus.
And then I guess just with both brands.
Where did you see that.
The pressure in terms of transactions.
Was that did it get worse as the quarter progressed anything.
Jump out at you in terms of.
Days versus weekend evenings versus launch.
Any color would be it would be very helpful.
Yes, I mean, I think as we've reported.
Previously I think the.
Weekday business is softer.
Particularly on the suburban markets.
Then the weekend business.
<unk> robust I would say Friday and Saturday.
I think that we're seeing very positive trends as a matter of fact, our number one initiative right now on the weekends is to really take advantage of the $6 30 to 830 traffic, which is significant so now so we like that but we certainly have seen.
Little bit of a different pattern on the weekdays, but it seems like the weekend becomes to make up for those levels of of patterns in terms of Pemex.
Interesting enough at SDK, where we just launched.
Our new version of the <unk> promotion and.
Unbelievably, we ran out of the product in a majority of our SDK. So so for the higher end I think there is a tremendous appetite.
For the premium products at the Kona Grill brand I would say that we do see a shift.
Not to less items, but perhaps people.
Boeing more too.
<unk>.
The what we call lighter fare under managed so we did see a little bit of people changing from maybe the main menu main entrees to.
Sandwiches and other stuff, but I would say in the overall.
Overall I mean.
The impact has really been mostly for us on that score on the weekday weekend and then on the SDK side, we have seen.
<unk> business.
<unk> and the impact of offices, we would see that being positive.
And we saw a positive move.
On the business related business and then obviously you heard me speak about 369, which is the best value point in our opinion is obviously, it's an opinion, but relative to.
Two consumer offering so we feel really good about that and then.
So that's kind of like the majority of the trends.
That we have seen with both brands hopefully that's useful.
Okay. Thank you very much.
The next question comes from Mark Smith with Lake Street. Please go ahead.
Hi, guys first.
First question I wanted to ask was just looking at the comp at <unk>.
Kona Grill.
Is this just a function of the macro environment, the consumer being a little more squeezed or was there anything else that happened here in the quarter for instance, whether that maybe slowed some patio.
Anything that you can give us for more info on that.
I mean, I'd say overall in <unk>, we said that you don't get credit for those type of things, but we did have a significant positive.
<unk> last year on the first quarter. So we were one of the very earlier rebounders on the casual space. So if you look at our numbers and basically the baseline that we're going up against a significant so if I look at the same store.
Coverage for Kona Grill, we came up the chute Super strong I mean, one of the better rebounders than the industry. So I think that as you look at the one year you probably.
Get less of an impressive number than when you do it to two years, but but when you look at the overall two year lap and a number that we posted in the Kona Grill is very impressive and our <unk> are in the $5 $2 million range. Now if you look at the trailing 12 months. So it's really difficult to be super critical of the cone.
Grille brand, where we can move to the <unk> from $4 million to $5 $2 million and in Burley I mean, if you take the Covid period out we've only really operated that brand and in about 18 months of really more normalize operations. So I would say moving <unk> over 30% on 18 months of operations.
Signifies that we have a pretty good handle on managing the revenue base.
Okay, that's fair.
As we look through restaurant operating expenses I know Tyler you called out.
Labor is still inflationary pressure.
And you took some price last year, but walk me through is there any other kind of puts and takes anywhere where youre seeing easing or any things that are particularly difficult and.
In that line at the restaurant level that that's putting pressure on margins.
Yes, Mark I think.
As we discussed in our prepared comments.
The first quarter is really to kind of the last quarter that we're going to see kind of that significant.
Inflation is it kind of ramped up in the second quarter and through the back half of last year and so I think we're seeing.
Significant wage inflation on a year over year basis, and then anything related to wages. We're also seeing.
Inflation as well whether that be.
Other operating expenses, such as R&M anything that takes people I think we're seeing that and so I think across that kind of.
Operating expense line on a on a year.
The year over year basis for the first quarter I think we're still seeing kind of.
High single digit low double digit inflation across all of the operating.
Outside of cost of goods and there is there is cost of goods inflation as well but in the.
Other operating expense line.
I'll just add a couple maybe snippets to that I think Tyler mentioned that our Cogs now has 24% and.
When we came down from $25 seven last year.
Which I think Thats significant I think theres very few restaurant companies.
<unk> achieved actually a lower number on Cogs and probably the highest inflationary markets. Yet. So so that really tells you that our Cogs line and the way that we manage the.
The day to day of Cogs is very good for the business.
A wise, we would've been able to achieve significant decreases I think as Tom mentioned is the big challenge in our business model is that.
Like it or not we were fully staffed Russian company with employees. So we chose to not get service snap cuts the guest experience.
In the past and so we did have planning of employees. So we were blessed to have our full workforce.
In our restaurants, and then as Tyler mentioned earlier, a majority of the labor inflation pressure that we get in wage. So so we've worked through that in the second third and fourth quarter last year and I think as I mentioned earlier in one of my responses.
First quarter. This year, so kind of the last quarter, while we had significant pressure on that so as I look at our ability to continue working on the P&L I think the.
The future is bright relative to the indicators that I just went through.
Okay great.
<unk> been any real change or can you speak to alcohol sales.
At both <unk> and kind of how those have been trending.
Fantastic question, so during the Covid period and coming out of Covid.
We deemphasize a little bit or if we will focus on selling liquor and wine just because we wanted to take advantage of.
The table space and turning the tables over so.
And so time at table was important to US I think now we are putting a lot more added emphasis on.
On the per check, particularly.
Extra with a wine bottle service and everything else. So I think.
Now that we're in a more normal operating days, if you will from a service perspective, I do expect liquor incidence to go up so that's really our history I think we've gone from being extremely good at the bar to kind of like a relaxing a little bit.
For exchange of table turns and now we're getting back to more normalized.
<unk> practices of selling more off the table.
Excellent. Thank you.
Sure.
Thank you Mark.
The next question comes from Roger Lipton, with Lyft and financial please go ahead.
Hi, Tyler.
You provided a lot of information. Thank you and thank you for taking my question I was going to ask you about the Kona in the first quarter of it.
Okay.
And then margin.
But you referred to.
Emphasis.
Team has put on on finding some operating efficiencies.
How long you think it will take to begin to see.
Margin improvement beyond that.
In the second quarter is going to take a little longer.
Okay.
Hey, Roger this is many again I think relative to timing on it I think we will see as well.
I would say that we would see.
Lots of it coming off on the second quarter because of the the wage lab, but I do think that third and fourth quarter are really the quarters that we would see the more significant impact I also think that our Columbus coming more online will also help lift the profile.
The margin of the brand and then and again if we have.
Several new units that we're adding that will also do that so I think time.
Over time with the addition of those units I think that we still believe that Kona Grill is one of the most attractive.
Economic models, and casual with high volumes greater than $556 million, and 17% plus type of margins, but but again I think 2023 will be the year of.
Really building rebuilding that backup lapping through the labor.
And then again next year as we continue to add units at the pace that we are we will obviously improve significantly the margins on the brand reminding I think that for the new Kona grills, we think 17% to 20% margins is kind of where we will be at so I think the overall of that.
It really helps.
Brian .
Oh, well located what in terms of openings.
Near term schedule the next few months.
Yes.
So another very good question I think I would tell everyone. When they asked me about timing as I look at our development plan for the year and expect that we will open Tomorrow October 1st obviously I know that's kind of just.
Modeling.
Answer, but I would say right now we do have.
Three to four restaurants that will be coming with regularity out of the chute, we have made significant.
Impact and Riverton and Charlotte.
Remington is Kona Grill, and then Charlotte SDK will be coming right after that and then desert Ridge.
The grille in Washington, DC SDK. So we do have a very nice lineup of restaurants coming.
Coming here back to backs, but just so that everybody is safe on the.
On modeling of our say October 1st and as we spoke.
<unk> talked about this before obviously still the big unknown in today's environment with construction is the permitting process has become very interesting in terms of how we get.
The permitting through and get through that cycle, but other than that the restaurant pipeline looks phenomenal and we look forward to start getting these things up and running in the next couple of weeks.
And do you think Youre Preopening Preopening was obviously.
So much higher this year than last because youre opening quite a few stores.
That sounds like Thats going to.
Continue to run at that level.
The balance of the year with the opening program you've got.
Yeah, I will explain that for this year, just because we're getting scale and gaining scale on that I think as we get out to future years, we will bring down our preopening, but for this year, it's safe to assume the levels that we we've been running and we've been talking about and the Big reason is there is a learning curve that comes with getting pre <unk>.
Opening teams ready to go so I think that our teams are going through that process right now, but I think in the longer term I think we'll be superefficient at opening these new units and so that's how I would think about it but just to be proper and safe and anything that you do right now.
Assume existing type of levels on Preopening.
Thanks very much.
Thank you Roger.
The next question is a follow up from Joshua long with Stephens. Please go ahead.
Hey, guys tight on for Josh and one more time. So the interest expense came in a little higher than we expected. This quarter just kind of see if that one eight was a good run rate to kind of model going forward.
Yes, Tyler so I think.
As you know we saw terms so for <unk>.
Increase.
Throughout the quarter and from from the end of last year, and so I think you had a 1.7 to $1 8 million.
It was a fine run rate to use.
Perfect I appreciate it guys.
Thank you Tanner.
Again, if you'd like to join the question queue.
Thats Star then one.
We have a question from Jake Patterson with Atlanta Investment Group. Please go ahead.
Okay.
Hey, guys. Thanks for taking the question.
I was just curious I know if I missed this but you guys have average weekly sales for SDK in Ghana for the quarter.
Hi, Jay this is Tyler.
Let's just do we can do a follow up on that we don't have them. Okay. Yes.
Especially if we actually posted on our investor decks usually.
When we do our posting so thats typically where were finding we haven't done our investor deck for the quarter, but thats typically where we put the e&ps.
Okay cool.
And then I guess.
<unk>.
Are there any trends or anything.
Traffic that you noticed that was maybe different from the past couple of quarters or is that kind of steady.
Study.
Yes.
Think brunch as a category in general there's a lot more.
People going to the branch category, but I think for US. We're so early on on capturing that day part that we haven't seen anything one way or the other nor have we seen any economic impact per se.
On the branch day parts of what we still look at our.
Lunched branch day part as a huge opportunity for both brands.
We have a.
Very good offering on product on both brands and frankly, the focus with branch. This year is to continue to evolve and bring some innovation to the menu on branch, but other than that where we're happy with us and will continue to grow it.
Gotcha.
Last one for me anything to call out on food.
<unk> foods, like beef cost or fish or anything like that.
Yes, I mean, I think beef.
This is pretty well published I think beef is.
Picked up spiked up a little bit recently, but we're still running through some of our contracted pricing. So we haven't really seen anything significant.
Relative to a couple of <unk>.
<unk> several months ago as a matter of fact as I mentioned earlier, our cost of goods.
Is the best it's probably ever been I think historically, we said 24 to 25 range for cards and we're at 24 for the quarter. So.
We did achieve the low end of our historical range on cost. So so I think our focus on Cogs at least internally is to continue managing the mix looking at <unk>.
Items that.
Bring in items to the menu that help you with the overall value.
And Cogs for.
Brian and just and just being very thoughtful about.
Things, like where subsides and and Butters and some of the initiatives that we have that help.
With the overall profitability profile of our menu.
Gotcha Alright.
Alright, well, thanks for answering the questions and good luck going forward.
Yes.
Thank you Sir.
Okay.
This concludes our question and answer session I'll turn the conference back over to <unk> for any closing remarks.
Thank you.
Thank you all for your interest on the one group today.
As I always do in my concluding comments, none of this would be possible.
Would that the fantastic support of our teammates.
Bring our mission of great execution to life every day, so for that thank you and.
My final.
Reach out to you is I'll be out in the restaurants. So I look forward to seeing you all in the restaurants, everybody have a great day. Thank you.
The conference has now concluded. Thank you again for attending today's presentation you may now disconnect.
Okay.